The head of the Commonwealth Bank of Australia Ltd’s
(ASX:CBA) structured finance division has left the bank following a review of her department.
There is speculation the division is to be wound down following concerns about possible damage to the bank’s reputation from the division’s aggressive tax systems.
The division played a key role in setting up and managing the bank’s controversial $5 billion operation in low-tax haven of Malta.
The bank has declined to comment on Leanne Leong’s departure or the future of the Malta operation, but the Australian newspaper reports that sources say the division has captured the attention of the Australian Taxation Office.
A wind-down of its structured finance division would mirror action taken by the other major banks due to the reputational damage caused by aggressive tax systems.
Meanwhile, the company’s institutional banking arm has ruled out the acquisition of the local operations of ABN Amro to instead focus on growing its broking and research capabilities internally.
For the 2009 financial year, Commonwealth Bank reported a profit of $4.723 billion.
